Protective Put (Married Put)
Description
Buying a put alongside a long position in the underlying to insure against a decline while keeping unlimited upside.
Setup
- Hold (or buy) one unit of the underlying.
- Buy one put option, typically out of the money, as insurance against a decline.
Context
Used by a long-term holder who wants to stay invested through uncertainty without accepting open-ended downside risk.
Risk Profile
Loss is capped at the entry price minus the strike, plus the premium paid for the put. Gain is unlimited as the underlying rises.
Pros
- Removes the open-ended downside of a bare long position.
- Keeps full upside participation.
- Known worst case from the moment the trade is placed.
Cons
- Put premium is a recurring cost if renewed over time.
- Underperforms a bare long position in a quiet or rising market.
- Cost of insurance rises when it is most wanted, i.e. when volatility is already elevated.
Effect of Time
Time decay works against the long put, quietly eroding the value of the insurance each day.
Effect of Volatility
Rising implied volatility increases the cost of the protective put but also increases its value as a hedge.
Look-Alike Strategies
Live Structure
| Position? | Right? | Ratio | Strike | Expiry | IV? | Premium? | Fill Price? | Liquidity? | Est. Fee? |
|---|---|---|---|---|---|---|---|---|---|
| Long | Underlying | 1 | — | — | — | $75005.9300 | $75005.9300 | — | $0.0000 |
| Long | Put | 1 | $74000.0000 | 20 Nov 2026 | 39.2% | $1500.1186 | $1537.6216 | 66.6000 | $22.5018 |
Net cost, breakevens, the payoff chart and the scenario table are after costs: every leg filled by crossing the spread, estimated fees included -- the same numbers the Scanner ranks by.
Estimated Cost to Assemble
An estimate of what entering this structure right now would really cost: filling every leg by crossing the spread (the ask when buying, the bid when selling) instead of at the mid-price, plus an estimated exchange fee. Real fees and fills can differ from this estimate.
Compare venues
These exact contracts -- same strikes, expiries and ratios -- on every venue BOSS tracks for this currency, at execution: what selling (bid) or buying (ask) each leg there comes to, after that venue's own fee. Green marks the best venue for each leg and for the whole structure.
| Deribit this page | Bybit | OKX | |
|---|---|---|---|
| Index? | $74881.7500 | $74973.4017 | $74883.1000 |
| Mid-Price Cost | $76506.0486 | $76616.1000 | $76532.6887 |
| Slippage? | +$37.5030 | +$2.5000 | +$18.7534 |
| Estimated Fees? | +$22.5018 | +$22.5431 | +$22.5041 |
| Total Estimated Cost | $76566.0533 | $76641.1431$75.0900 worse than this page | $76573.9462$7.8900 worse than this page |
| Max Profit? | Uncapped | Uncapped | Uncapped |
| Max Loss? | -$2566.0533 | -$2641.1431 | -$2573.9462 |
| Breakeven(s)? | $76566.0533 | $76641.1431 | $76573.9462 |
| Structure IV? | 39.2% | 39.1% | 39.1% |
| Open on this venue → | Open on this venue → |
Each leg: what it nets there per contract (fill price with the fee folded in), then the fill price, fee, IV and the size quoted at that price.
This structure holds the underlying itself: its row shows each venue's forward for the expiry, which isn't a price anyone fills at, so it's never marked best or split across venues -- and every total includes it, so the totals differ mostly by each venue's basis.
For comparing prices, not a recommendation: quotes move by the second, size is only what's shown at the top of the book, fees are each venue's published estimate, and the venues settle against different indexes and margin separately.
Market Context
This expiry as the Dashboard sees it: how the legs are priced against at-the-money and realized volatility, and where the expiry's forward sits against spot.
Volatility Smile?
Implied volatility across strikes at this expiry; the marked lines are this structure's strikes. Buying on the high part of the curve pays up for volatility; selling there collects it.
Leg bought Leg sold
Payoff & Greeks vs. Underlying Price
The Greeks curves are a Black-Scholes model using each leg's current implied volatility, holding time to expiry fixed -- not live exchange data at every price, which only exists at the current price (dashed line).
Payoff at Expiration
After costs At mid price
This structure's value and profit/loss at expiration, at a handful of specific prices: every leg's strike, every breakeven, the current spot, and the chart's own range.
| Underlying Price | Value at Expiration | Profit / Loss | Return on Cost |
|---|---|---|---|
| $59000.0000 | $74000.0000 | -$2566.0533 | -3.4% |
| $74000.0000 | $74000.0000 | -$2566.0533 | -3.4% |
| $75005.9300 current | $75005.9300 | -$1560.1233 | -2.0% |
| $76566.0533 breakeven | $76566.0533 | $0.0000 | +0.0% |
| $89000.0000 | $89000.0000 | $12433.9467 | +16.2% |
Delta (model)?
Gamma (model)?
Vega (model)?
Theta (model)?
Rho (model)?
Alternatives
From the Scanner's latest pass (21:31:48 UTC), priced at execution like everything above.
Same payoff through other strategies
| Strategy | Market | vs. this one | Credit/Debit | Max Profit? | Max Loss? | Prob. of Profit? | Max Profit / Max Loss? |
|---|---|---|---|---|---|---|---|
| Long Call74000 | Deribit · BTC | -$6.4648 | $2572.5182 | Uncapped | -$2572.5182 | 36% | — |
| Long Call74000 | OKX · BTC | -$6.7952 | $2572.8486 | Uncapped | -$2572.8486 | 36% | — |
| Long Call74000 | Bybit · BTC | -$26.4854 | $2592.5387 | Uncapped | -$2592.5387 | 37% | — |
Other strikes and widths of this strategy
| Strategy | Market | vs. this one | Credit/Debit | Max Profit? | Max Loss? | Prob. of Profit? | Max Profit / Max Loss? |
|---|---|---|---|---|---|---|---|
| Protective Put (Married Put)71000 | Deribit · BTC | — | $75735.5352 | Uncapped | -$4735.5352 | 43% | — |
| Protective Put (Married Put)72000 | Deribit · BTC | — | $75923.0365 | Uncapped | -$3923.0365 | 41% | — |
| Protective Put (Married Put)73000 | Deribit · BTC | — | $76185.5384 | Uncapped | -$3185.5384 | 39% | — |